Mutual funds hold on to new-age companies despite drubbing post listing

Mumbai: Some mutual funds continued to hold on to new-age internet companies like Zomato, Paytm (One97 Communications), Policybazaar, Nykaa (FSN Ecommerce Ventures) and Cartrade Tech despite their stock prices taking a beating in the past 3-4 months.

Several mutual fund schemes had subscribed to the IPOs of these companies last year. Some of them raised their stakes in these companies after listing. As of February 28, 2022, mutual funds held 9.1 million shares of Nykaa compared to 4.8 million at the time of listing. Prominent fund houses holding the stock include Axis, BOI AXA, Canara Robeco, HSBC, Mirae, Motilal Oswal and SBI.

ET Bureau

Similarly, mutual fund holdings in Policybazaar rose from 9.5 million shares to 10.5 million, while Paytm saw an increase from 5.8 million to 9.1 million with Mirae Asset Financial Services adding it on December 21.

As many as 54 equity MF schemes continue holding Zomato since its listing. In Policybazaar, the count has come down from 51 to 40, while in Paytm, it is down from 17 to 16. The number of funds holding Nykaa remains at 50.

Barring Nykaa, all the other new-age companies – Zomato, Paytm, Cartrade and Policybazaar -listed last year are way below their IPO offer prices.

While Paytm’s market value has eroded 73% post listing, Cartrade lost 61%, Zomato has declined 30%, Policybazaar has dropped 38%, and Nykaa shed 23%.

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